Operating Agreement
PPM
The sponsor purchased Venture on 52nd in foreclosure, a residential apartment building consisting of 71 units located at 5245 E Thomas Road, Phoenix, AZ 85018. Venture on 52nd is a modern, pet-friendly apartment community offering 12 studio, 47 one-bedroom, and 12 two-bedroom units, ranging from 400 to 748 square feet. Each unit includes a refrigerator, microwave, and air conditioning. The property features a pool, spa, playground, laundry facility, and barbecue grills for residents.
Venture on 52nd LLC presents a compelling opportunity to invest in a distressed multifamily asset strategically located in one of Phoenix’s most desirable neighborhoods—Arcadia. This prime location places the property between Old Town Scottsdale and Downtown Phoenix, two of the most vibrant and rapidly growing areas in the region.
The asset was acquired for $11,000,000, representing a significant value play with a purchase price over 35% below its prior bank-appraised value of $18,250,000 in 2022. This substantial discount creates a unique opportunity for investors to capitalize on the property’s strong upside potential as market conditions stabilize and value-add improvements are implemented.
With its highly sought-after location, favorable acquisition cost, and potential for long-term appreciation, Venture on 52nd LLC offers an attractive avenue for investors looking to participate in the Phoenix multifamily market at a great entry point.
Before the Federal Reserve began its series of interest rate hikes, many apartment owners leveraged floating-rate loans to acquire properties, often with aggressive loan-to-value ratios. Today, rising interest rates and escalating costs of interest rate caps have created a challenging environment, significantly increasing debt service expenses.
The impact is profound: over $2.2 trillion in debt is set to mature before 2028, much of which will need to be refinanced at higher rates (Wall Street Journal). As a result, many apartment owners are selling properties at steep discounts—often 20–30% below previous market valuations—to meet financial obligations.
This trend suggests that as completed units continue to exceed new starts, supply will tighten beginning in 2025 and likely extend in subsequent years.
The combination of declining vacancy rates, strong tenant demand, and tapering supply points to a favorable environment for the recapture of intrinsic value.
Investing at this discount creates the potential for a substantial upside as market conditions stabilize and improve.
Venture on 52nd presents a unique investment opportunity, capitalizing on a distressed asset available at a significant discount, while positioning itself in a market with positive indicators for long-term growth and stability, making it an ideal choice for investors looking to maximize returns.
Nearby favorites include La Grande Orange Grocery & Pizzeria, Ingo’s Tasty Food, The Stand, and The Porch, known for gourmet fare, craft cocktails, and casual bites.
Minutes from Biltmore Fashion Park, Scottsdale Fashion Square, and major employment hubs. Easy access to Old Town Scottsdale, Downtown Phoenix, and Phoenix Sky Harbor Airport.
Close to golf courses, hiking trails, and premier outdoor spaces, making it an ideal location for professionals and families alike.
| Apartment Type | Current Rent | Market Rent |
|---|---|---|
| Studio | $1,059 | $1,249 |
| 1 Bed/1 Bath | $1,099 | $1,395 |
| 2 Bed/1 Bath | $1,359 | $1,595 |
How was the purchase price determined?
The purchase price was determined through a foreclosure sale. The property was acquired for $11,000,000, which was over 35% below its bank-appraised value of $18,250,000 in 2022.
The exit strategy is to hold the property for three years and sell it to a third-party buyer.
Where is the property located?
The property is located at 5245 E Thomas Road, Phoenix, AZ 85018, in the Arcadia neighborhood, between Old Town Scottsdale and Downtown Phoenix.
Who is managing this investment?
The General Partner is Arizona Multifamily Opportunistic Fund LLC.